Nuclear Energy Boom: Why AI Data Centers Are Reshaping the Power Grid

Nuclear power just got a major plot twist. With Trump pushing aggressive expansion policies and tech giants like Microsoft and Meta frantically hunting for reliable baseload power to fuel their AI operations, nuclear energy has shifted from “boomer infrastructure” to “actually essential.” Here’s what’s really happening behind the scenes.

The AI Data Center Hunger Machine

Let’s be real: AI models are power-hungry monsters. A single data center can consume as much electricity as a small city. That’s where nuclear comes in—it’s the only clean energy source that actually scales and runs 24/7 without weather dependency. And the deals are flying.

Constellation Energy (the nuclear heavyweight that spun off from Exelon in 2022) just inked a massive 20-year power deal with Microsoft to restart Three Mile Island’s Unit 1. Meta followed with their own 20-year nuclear PPA. These aren’t tiny agreements—they signal that Big Tech is betting serious capital on nuclear becoming the backbone of AI infrastructure.

The Numbers That Matter

Constellation Energy is absorbing Calpine for $16.4B (including $12.7B debt assumption), which essentially doubles their generating capacity to ~60 GW. This acquisition gives them heavy exposure to Texas—basically the epicenter of AI data center buildout in the U.S.

On the policy side, Trump’s executive orders are cutting through red tape on reactor licensing and uranium production domestically. The administration wants to quadruple U.S. nuclear capacity by 2050. Whether that timeline is realistic or not, the regulatory tailwinds are very real.

If You Want Broad Exposure Without Picking Stocks

Not comfortable going all-in on one nuclear company? The VanEck Uranium and Nuclear ETF (NLR) gives you a basket of 28 stocks across the entire supply chain—from uranium miners (Cameco, Centrus Energy) to reactor builders (Oklo doing small modular reactors) to component suppliers (BWX Technologies). The fund tracks global plays too, not just U.S. names. Expense ratio sits at 0.56%, dividend yield around 0.86%.

Top holdings: Oklo (8.63%), Constellation Energy (7.4%), Cameco (6.92%), Centrus (6.57%), BWX Tech (6%).

The Real Question

Nuclear’s narrative has flipped from “dying legacy” to “essential for AI.” But execution risk remains—reactor construction timelines slip, regulatory approval isn’t guaranteed, and opposition doesn’t disappear overnight. Constellation’s massive acquisition could be genius or overambitious depending on how smoothly integration plays out.

The thesis is sound. Whether individual stocks or an ETF makes more sense depends on your risk tolerance and conviction level.